Ac300 Unit 3 Homework
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Category: Business and Industry
Date Submitted: 12/04/2011 09:35 PM
UNIT 2 CHAPTER 1 1. | Question : | Which of the following is an internal user of a company's financial information? |
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| Student Answer: | | company treasurer |
| | | stockholder in the company |
| | | bank lending to the company |
| | | union |
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| Points Received: | 2 of 2 |
| Comments: | |
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2. | Question : | Which pronouncements are not issued by the FASB? |
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| Student Answer: | | Statements of Financial Accounting Concepts |
| | | Technical Bulletins |
| | | Opinions |
| | | Interpretations |
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| Points Received: | 2 of 2 |
| Comments: | |
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3. | Question : | Auditors face ethical issues because |
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| Student Answer: | | GAAP permits various standards to be used to produce profits |
| | | auditors may express an opinion that may cause difficulty to employees of a company |
| | | auditors may not discover insider trading |
| | | GAAP does not permit fraud |
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| Points Received: | 2 of 2 |
| Comments: | |
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4. | Question : | Notes to financial statements provide |
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| Student Answer: | | discussions that further explain items shown in the financial statements |
| | | comparative financial information with the previous year |
| | | management’s discussions about plans for the future |
| | | the report of the independent auditors |
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| Points Received: | 2 of 2 |
| Comments: | |
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5. | Question : | The Sarbanes-Oxley Act of 2002 established the Public Company Accounting Oversight Board (PCAOB). The PCAOB was established to |
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| Student Answer: | | bring to justice public companies such as Enron and WorldCom for committing fraud |
| | | oversee the standards promulgated by the SEC related to public companies |
| | | protect the interests of investors by overseeing auditors of public companies |
| | | establish GAAP for use...
